Managing Fiscal Policy Uncertainty Under Trump 2.0

This co-hosted financial podcast discusses the outlook for U.S. fiscal policy under the Trump administration and its impact on Treasury yields. The hosts first review the recent FOMC meeting and the Fed's stance on interest rates, then delve into the potential impact of expiring tax cuts and proposed new fiscal policies on the budget deficit. They analyze the political process for passing legislation, highlighting the importance of budget reconciliation and key dates like the March 14th deadline for extending stopgap appropriations. A key takeaway is the significant uncertainty surrounding the deficit's trajectory, which is expected to influence Treasury yields in the coming months. The discussion concludes by emphasizing the many variables at play, including the potential for tariff impacts to offset deficit expansion.